In business, each and every client acquired is a critical element in continued success. Many organizations aim to retain their client base over the long term, but not every client your business encounters is a keeper.
While some partnerships with clients offer benefits to both sides, others may start to shift in unhealthy ways that become cause for concern. Learning how to identify the warning signs of a toxic client partnership is key to mitigating harm to your business and reducing stress on your team.
To help leaders discern which clients to keep and which clients to let go of, 11 Forbes Business Council members each share one sign that a partnership with a client has turned toxic and needs to be ended.
1. Core Business Values Misalignment
You can’t be of service to everyone as you wouldn’t be serving anyone. One way to know it’s time to end a client partnership is when the relationship no longer aligns with your core business values. Any relationship that would want you to compromise your business values is also one that would end the essence of your business. – Jennifer Orode, Ingenium Concepts Limited
2. Continuous Disrespect Of Boundaries
One clear sign of a toxic client partnership is continuous disrespect or disregard for boundaries. If a client consistently crosses lines that you have clearly set to protect your team and your time, it’s best to part ways. In addition to hurting your mental health, toxic partnerships can harm your reputation and drain your resources. – Emily Reynolds Bergh, R Public Relations Firm
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3. Constantly Shifting Communication Dynamics
One key sign of a toxic client relationship is a consistent shift from collaborative to adversarial communication. For instance, in real estate investments, if a client repeatedly challenges agreed-upon strategies without constructive dialogue, it can hinder progress. It’s crucial to reevaluate such partnerships and consider parting ways to maintain a healthy business environment. – Johan Hajji, UpperKey
4. A Breakdown In Communication
Communication breakdown is a sign that a partnership has turned toxic and needs to be ended. Relationships are based on trust, and disintegrating communication patterns are an indication that trust has eroded. A key indicator is a change in tone that is evasive or terse. Another sign is if appointments are not being kept. A client that communicates negatively or does not trust you is not a keeper. – Alexander Chandler, Alexander Advisory Group
5. Loss Of Transparency
One sign of a toxic client partnership sign is when the relationship loses transparency. When you find yourself constantly reading between the lines and things are no longer clear and straightforward, it erodes trust. If honesty is lacking and transparency is compromised, it can become a valid reason to consider stepping away, as different organizations value clarity and honesty to varying degrees. – Eran Mizrahi, ingredient brothers
6. Lack Of Respect And Trust
One clear sign a client partnership has turned toxic is a consistent lack of respect and trust. When a client disrespects your expertise, undermines recommendations or creates a hostile environment, it can damage team morale and your firm’s reputation. If attempts to resolve issues fail, terminating the partnership may be necessary for the well-being of all parties. – Anuraag Sunder, Aon
7. An Inability To Meet Their Needs
If you can’t bring value to a client or if a client’s needs are such that you cannot fill them without a loss, it’s time to part ways. The only exception to the latter part of that advice is if you’re investing now at a loss with a strategy for a more significant return later. In all other cases, the former can damage your reputation while the latter results in economic loss. – Joseph Santana, Joseph Santana, LLC
8. Scope Creep
One potential sign of a toxic partnership is if a client consistently demands more than what was agreed upon without adjusting timelines or compensation, which is also known as scope creep. When a client continually pushes boundaries and expects free work or unrealistically fast turnarounds, it can strain resources and negatively impact the quality of work and team morale. – Dustin Lemick, BriteCo
9. Lack Of Respect For Your Time And Skills
When a client disrupts your workflow by texting at midnight or undermining your expertise, it’s a red flag. These behaviors show a lack of respect for your time and skill. Ironically, the hardest clients often need you the least. They drain resources, affecting your ability to service better-fitting clients. Ending such a relationship is not just professional—it’s self-care. – Sevana Petrosian, SEV
10. Management Style Misalignment
Sometimes even management style can be enough of a reason to move on. For example, we had a client I described as “run and gun.” There were no plans, and everything was last minute. We are a team that is more “ready, aim, fire.” The style difference made both the client and our team less effective. In the end, the client and our team together agreed the client should seek other support. – Ray Rasmussen, rGen Consulting
11. Unrealistic Demands
When a client starts making unrealistic demands, this can signal a toxic client. This simply means if communication becomes consistently negative or the client’s expectations are unmanageable, it might be time to part ways for the well-being of both parties. – Salvador Ordorica, The Spanish Group LLC
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